Plunging stock prices shook the biotech sector this year. Young companies attempting to go public found little appetite for the sky-high valuations that were common in 2020 and 2021’s bull run of IPOs. Some investors described that period as resulting from “a lack of discipline.”
Recently, companies have been more likely to try and prolong the cash raised in Series B rounds or raise additional private funding before making a debut on the Nasdaq. A few have opted for alternatives such as reverse mergers.